Connect with us

Budget 2015-16

Realty sector indirect beneficiary: JLL India


The following is the analysis of the Union Budget 2015-16 by Anuj Puri, Chairman & Country Head, JLL India

In this year’s Budget, the Finance Minister has conveyed a message wherein the benefits lie only in the fine print. For the common man, though the cumulative savings implied by various provisions are stated to be to the tune of Rs. 4.44 lakh, this is assuming a certain magnitude of personal investments into pension funds and health insurance.

The Budget has not provided any additional relief via increased income tax deduction limit or on repayment of housing loans. The regime on these fronts which was announced during the previous Budget from eight months ago remains unchanged. This is a disappointment, since there was expectation that the Finance Minister would further increase either or both of these limits and thereby address the reality of high property prices in India.

The Budget is low on big bang reforms and real estate is only an indirect beneficiary at best:
• Smart Cities: The Budget did not provide any details on this initiative taken by the Government. Factors such as how it will define these cities and which cities have been identified remain unclear. However, increased allocations for rail-road development, penetration of education and training centres and towards the Digital India initiative could contribute to the shaping of Smart Cities in the country.

• GST: The Finance Minister has announced that GST will commence from the next financial year and has increased service tax and central excise duty as a preparatory measure for its deployment. This puts an end to the speculation on when GST would finally become a reality.


• REITs: The Finance Minister has said that he proposes to rationalise the capital gains regime for REITs, but has not given any specifics. This could mean that the sponsor of a REIT may get a one-time capital exemption in exchange for units, but this needs to be confirmed.

• Wealth Tax: Wealth tax has been eliminated and a new Super Rich tax has been put in place with an applicability limit of Rs. 1 crore, which is significantly higher than the erstwhile Rs. 30 lakh (in India, a major share of personal assets are in the form of real estate, particularly in the urban areas, where real estate prices are very high.) Effectively, this new measure implies that a lot of urban housing stock is out of the purview of the new Super Rich tax, and this is a relief for the common man. Only houses priced above Rs. 1 crore will now be taxable.

• Transparency: Incentivising usage of wired money rather than cash transactions has significant pertinence to real estate, which is one sector where cash transactions have been impacting transparency. Another boost to transparency in the real estate sector is the enhanced punitive measures which will now be taken on concealment of assets, including benami properties.

• Visa on Arrival: The visa on arrival programme has been increased to cover 150 countries from the previous 43, which will lead to a huge step forward for tourism in India. This is a huge plus for hospitality real estate and will also significantly amplify destination retail in the country.


Latest News

Events10 hours ago

Danube Properties’ Dh525 million Opalz sold out on the first day of launch

October 4, 2022: Danube Properties, the UAE-based affordable housing developer, said, its latest project Opalz, a twin-tower residential project with...

Events10 hours ago

Pacific Mall D21’s ‘Dussehra Celebrations’ drops the curtain with high attendance

New Delhi: Pacific Mall D21 organised a two-day Dussehra celebration and Garba Night, attracting massive turnouts. The special arrangement of...

News10 hours ago

Tata Value Homes sells over 100 residential units at New Haven, Bahadurgarh at launch

Delhi/Haryana October 4, 2022: With an aim to address the growing demand for quality homes in Haryana – Bahadurgarh, Tata...

New Launches10 hours ago

Welspun Corp opens steel plant in Anjar

October 3, 2022, Anjar, Gujarat: Welspun Metallics Limited, a subsidiary of Welspun Corp Limited (WCL), the flagship company of the Welspun...

Events1 day ago

Over 1500 cyclists join Hiranandani Thane Cyclothon 2022 to support ‘Rhyme for Earth’ initiative

October 2, Thane: The Hiranandani Group hosted the first Hiranandani Thane Cyclothon today from its thriving Thane township, Hiranandani Estate. Over...

New Launches1 day ago

Ashiana Housing adds over 900 senior living units with Villas and Apartments with the launch of Ashiana Advik in Bhiwadi

New Delhi, October 3, 2022: New Delhi-based real estate developer Ashiana Housing has announced the launch of Ashiana Advik in Sector 39, Bhiwadi....